For investors seeking momentum, First Trust NASDAQ Global Auto ETF (CARZ Quick QuoteCARZ - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up roughly 26.1% from its 52-week low price of $28.48/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

CARZ in Focus    

This fund offers pure play global exposure to 33 auto stocks. It is a large cap centric fund with high concentration on the top 10 holdings with about 60.8% of assets. In terms of country exposure, Japan takes the top spot at 33.8% while the U.S. and Germany round off the next two spots with 23.2% and 19.9% share, respectively. The product charges 70 bps in fees per year (see: all the Consumer Discretionary ETFs here).

Why the Move?

The auto industry has been an area to watch lately as 2016 was another banner year with sales climbing 0.4% year over year to an annualized 17.55 million units, breaking an all-time record of 17.47 million vehicles in 2015. This was especially due to robust light-truck demand, meaty discounts and year-end incentives. Strong consumer confidence, an accelerating U.S. economy, rising income and relatively low fuel prices also drive the auto industry.

More Gains Ahead?

Currently, CARZ has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook, so it is hard to get a handle on its future returns in one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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